China's soybean imports from the US rise 14.9% in March but remain below expectations

China's soybean imports rose by 14.9% on an annual basis in March, but they came in much lower than analyst expectations, amid delays in shipments arriving from Brazil as a result of tightened inspection procedures related to contamination.

Data from the General Administration of Customs showed that total imports reached 4.02 million metric tons, compared to 3.5 million tons in the same period last year.

An analyst at Shanghai JC Intelligence, Rosa Wang, said that expectations were pointing to about 6.4 million tons, but imports were affected by the delay of Brazilian shipments due to tightened phytosanitary inspections, amid concerns over the presence of contaminants in some shipments.

The data indicated that imports rose on an annual basis supported by a low base, as last year's imports were affected by the decline in China's purchases of U.S. soybeans and the delay of the Brazilian harvest.

Trade sources indicate that China intensified inspections after spotting cases of shipments containing pesticides and fungi, in addition to heat damage and the presence of live insects.

During the period from January to March, China's imports reached 16.58 million tons, a decrease of 3.1% compared to 17.11 million tons in the same period last year.

Imports are expected to rise again during the coming months with the arrival of more U.S. shipments and Brazil's record crop at Chinese ports.

Agricultural researcher at Guoyuan Futures, Liu Jinlu, said that imports may exceed 10 million tons per month during the period from April to June, with close monitoring of weather conditions in the U.S. soybean planting season and the potential for any logistical disruptions.

He added that stable demand from the livestock sector is likely to support prices, which may keep them within a limited trading range with wide fluctuations.

Traders are also awaiting an anticipated summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping next May to obtain signals regarding the future of Chinese demand for U.S. soybeans, in light of trade tensions that had previously delayed China's purchases of the American autumn crop until last October.

On the trading front, soybean futures for May delivery fell by 0.4% to $11.58 per bushel.